IPO Watch: Felix becomes 2021's first ASX tech IPO; shares edge upwards

2021’s first ASX tech IPO has listed today, in construction-focused software company Felix Group (ASX:FLX).

The company, which was founded in 2012, is a cloud computing stock focused on the construction sector.

Felix’s flagship enterprise software – which also bears the name Felix – automates and streamlines critical procurement-focused business processes.

It also has a Vendor Marketplace which connects construction contractors and vendors. Felix boasts clients including CIMIC and Veolia.

The company raised $12 million at 36 cents per share. As trading began, Felix shares saw a modest rise to 39 cents 8 per cent higher than its IPO price.

Felix Group (ASX:FLX) share price chart

Felix the first tech IPO of 2021; and more to come

Felix’s listing follows a number of other construction IPOs (both pure-play and technology solution focused) in recent months including Maas Group (ASX:MGH) and Hipages (ASX:HPG).

Upcoming ASX tech IPOs in the next few weeks, include cloud computing company Nexion Group (ASX:NNG), traffic tech stock Acusensus (ASX:ACE) and Perth-based residential telco Pentanet (ASX:5GG).

Expecting further growth

Felix has seen rapid growth in recent years.

It told prospective shareholders its vendors on the Vendor Marketplace platform have grown from 10,036 to 39,398 on September 30 2020.

It has also reported that enterprise SaaS revenues have grown by 467 per cent over the last two financial years – although it is not yet cash flow positive.

Felix also expects further growth in the months ahead and not just because of its IPO proceeds.

“Felix also stand to benefit from the Federal and State government’s COVID-19 stimulus measures and the recently announced record $110 billion Federal land transport infrastructure program over the next 10 years,” chairman Michael Bushby said in his company’s prospectus.